A residential building company has collapsed into liquidation just a few months after landing in court over nearly $1 million in unpaid debts.
News.com.au can reveal that the Victorian Supreme Court ordered Melbourne-based Como Homes Pty Ltd to wind up on Tuesday.
Honourable Associate Justice Gobbo ordered that “Como Homes Pty Ltd be wound up in insolvency under the provisions of the Corporations Act 2001”.
Guiseppe Rambaldi and Innis Cull of insolvency firm Pitcher Partners have been appointed as liquidators.
It’s unknown how many homeowners and creditors have been impacted but in the final court proceedings, there were 11 separate creditors aiming to have the company wound up.
A social media group of Como homeowners has 64 members.
Como Homes is a residential builder based in Dandenong in Melbourne’s southeast which has been a registered business since 2017, according to the corporate regulator.
The firm has been involved in a messy legal fight since the beginning of this year and in July, news.com.au reported that 13 creditors were chasing it for debts totalling nearly $1 million.
Como Homes director Christian Kidd proposed selling his family home in an earlier court hearing to pay back debts and at the time the company was spared from going into liquidation. On Tuesday, however, the business was ultimately ordered to shut down forever.
The director’s solicitor James Shannon told news.com.au his client had tried everything to meet his obligations to homeowners and suppliers.
“It’s no secret that the construction industry has experienced a difficult couple of years,” Mr Shannon said.
“Unlike many, Mr Kidd sought to meet his obligations both to his customers and to his creditors, going so far as to sell his own home to do so.
“In the end it wasn’t enough, but he deserves the utmost credit for his efforts.”
Mr Kidd was also sought for additional comment.
In a statement to news.com.au, a spokesperson from the liquidation firm, Pitcher Partners, said Mr Kidd was cooperating with them in their investigations.
Pitcher Partners has also set up a website, www.comohomesliquidation.com.au, which includes more information and FAQs for creditors and stakeholders.
"Stakeholders who hold contracts with Como Homes, including for building works, will be affected by the liquidation. Those parties should obtain legal advice about their options," the firm's spokesperson added.
"The liquidators will investigate the causes of the collapse of Como Homes. The liquidators will require time to understand the affairs of the company and to take appropriate steps in relation to its activities. This will include an examination of its financial trading history, the projects it was involved in and the circumstances leading to the winding up order."
Brendan* is relieved the company has gone under because he can finally access a last resort insurance scheme to recover the $35,000 deposit he paid.
The 56-year-old signed a contract with Como Homes in July last year but so far only has a vacant lot to show for it.
“We still have an empty block,” he lamented to news.com.au.
“It felt like a lot of delaying tactics.”
He added that he didn’t know why the company “kept fighting it for so long”.
“It seems crazy,” he said, adding it “would have been easier for everyone” if the business had closed down months ago.
“We actually feel a bit lucky that no work was done in the end as I’ve heard others have had frames up that will need to be pulled down and redone.”
The liquidators
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On January 24, Flooring Xtra began winding up proceedings against the embattled construction firm after it failed to comply with a statutory demand for payment.
The flooring supplier provided invoices which showed from July and August last year, Como Homes racked up debts of $141,000 in those two months but never paid.
Flooring Xtra suspended work with the company in August and several months later lodged documents with the Supreme Court.
This lodgement sparked a pile-on for Como Homes.
A further 12 other applicants joined the court proceedings as supporting creditors in the following months.
In April, landlords repossessed the builder’s office in Dandenong which was also when its landline stopped working.
Concerned customers were greeted with the eviction notice when they visited the firm’s offices.
At the time, Jeremy*, a customer, said he had “been sending emails, texts, no reply”.
The dad-of-two engaged Como Homes to knock down and rebuild his family home in Melbourne last year.
“Nothing happened until February. And then the house was demolished. And then that’s it, nothing has happened,” he previously told news.com.au.
It’s understood the debt with Flooring Xtra was settled after a July hearing, but another creditor, Liquid Force Plumbing, took over as the lead plaintiff and pushed to have the company wound up.
This finally ended up happening on Tuesday.
It comes as the entire building industry is in strife.
ASIC insolvency statistics show 2213 building companies collapsed during the 2022-23 financial year — a 72 per cent increase on the previous 12-month period.
The alarming trend has been blamed on a “perfect storm” of factors, including fixed price contracts, escalating costs, supply chain disruptions and tradie shortages.
The previous Morrison government’s HomeBuilder grant, which was introduced in June 2020 and handed out $2.52 billion to owner-occupiers who wanted to build or substantially renovate a home, turbocharged the sector.
More than 130,000 customers signed on for the program, with many tradies agreeing to the work under fixed-price contracts that soon became unsustainable as prices began to soar.
This year alone, news.com.au has reported on dozens of major builders that have collapsed.
Australia’s 13th biggest builder, Porter Davis, also collapsed earlier this year, placing 1700 projects and another 779 empty blocks of land in jeopardy across Victoria and Queensland, while more than 1000 unsecured creditors are owed a whopping $71 million.
More Coverage
In one week in July, news.com.au reported on a new builder going into external administration every day.
Last week, news.com.au reported that major national construction company, NPM Group, standing for National Projects and Maintenance, went into voluntary administration with nearly 200 employees impacted.
alex.turner-cohen@news.com.au
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